LEARNING OBJECTIVES FOR FIRST TEST

LECTURE 1: The student will be able to:

1) identify the entity, unit of analysis, or element from a scenario/problem

2) identify quantitative vs. qualitative variables

3) identify a case

4) identify an observation

5) identify cross-sectional vs. time series data sets

6) identify discrete vs. continuous variables/data

7) identify the level of measurement of a variable/data: nominal, ordinal, interval, or ratio

LECTURE 2: The student will be able to:

1) identify the appropriate hypothesis test for the scenario/problem

2) use Minitab to obtain appropriate statistical output for the scenario/problem

3) write a hypothesis test using Minitab output

4) interpret Minitab output to make an appropriate business decision

5) discern incorrect statistical analysis for hypothesis testing

LECTURE 3: The student will be able to:

1) identify the appropriate chart/graph type to use for data given

2) build an appropriate chart/graph for given data using Excel

3) identify problems with charts/graphs

LECTURE 4: The student will be able to:

1) identify dependent/response vs. independent/explanatory variables

2) graph bivariate data using Minitab

3) discern whether a graph for bivariate data is correctly done with respect to dependent and independent variables

4) identify whether a graph of bivariate data shows a positive linear relationship, negative linear relationship, or no relationship

5) calculate the correlation using the formula by hand using raw data

6) calculate the correlation using the formula by building a spreadsheet in Excel (no use of built in formulas allowed)

7) use Minitab to obtain the correlation

8) identify the correlation on Minitab output

9) interpret the correlation discussing the strength and direction of the relationship

10) identify the p-value associated with correlation using Minitab output

11) write a hypothesis test for the existence of a linear relationship between two variables

LECTURE 5: The student will be able to:

1) define variables based upon information given in a scenario/problem

2) use Minitab to obtain regression output

3) identify the slope

4) interpret the slope

5) identify the y-intercept

6) interpret the y-intercept if appropriate

7) explain why the y-intercept should not be interpreted if inappropriate

8) identify the coefficient of determination

9) interpret the coefficient of determination

10) calculate the correlation from the coefficient of determination

11) calculate the coefficient of determination from the correlation

12) use Minitab to obtain descriptive statistics

13) explain the use of descriptive statistics when doing regression

14) write the equation of the line using Minitab output

15) use the equation of the line to calculate a prediction by hand, if appropriate

16) explain why a prediction should not be made when inappropriate

17) use Minitab to obtain a prediction, if appropriate

18) discuss why one should do a scatterplot before doing regression

19) discuss why one may wish to do correlation analysis before doing regression

LECTURE 6: The student will be able to:

1) calculate a prediction interval using the formula, by hand

2) identify each of the statistics in the prediction interval formula and interpret its effect on the on the width of the prediction interval

3) interpret the prediction interval

4) use Minitab to obtain the prediction interval

5) identify the prediction interval vs. the confidence interval on Minitab output

6) interpret the confidence interval for the average

7) calculate the confidence interval for slope, by hand, using the appropriate formula

8) interpret the confidence interval for slope in reference to whether it shows a linear relationship exists between the two variables

9) calculate a residual by hand

10) explain what a residual is graphically

11) use Minitab to find the residuals

12) use Minitab to make a residual plot

13) discuss the four assumptions that must be met for linear regression

14) discuss the three assumptions that must be met for linear regression of cross-sectional data

15) identify any problems shown on a residual plot

16) sketch any of the problems that can occur on a residual plot

17) discuss the relationship between the assumptions of linear regression and how these problems show up on a residual plot

18) identify a null residual plot

19) sketch a null residual plot

20) interpret a residual plot

21) check the normality assumption two ways:

1) use Kolgomorov-Smirnov test---hypothesis test required

2) show all standardized residuals are between -3 and 3

22) develop a linear regression model using Minitab showing all appropriate statistical analysis in Minitab

LECTURE 7: The student will be able to:

1) use Minitab to obtain regression output showing a linear equation of a company’s stock returns against its market’s stock returns

2) determine whether a company’s stock returns are more or less risky than the market a whole